Airlines Collapsed or Underwent Transformation in 2024
In 2024, the aviation industry faced a turbulent year, with 14 airlines either ceasing operations entirely or scaling back significantly due to a combination of financial losses, operational difficulties, and adverse geopolitical market impacts.
One of the most notable casualties was Humo Air, a low-cost carrier based in Uzbekistan, which had one of the shortest lifespans in aviation history, ceasing operations in 2024. Similarly, Jetlines, a Canadian low-cost carrier that began operations in 2022, and Lynx Air, a low-cost carrier operating in Canada, both folded in 2024, unable to sustain operations in Canada's competitive market.
The Middle East was particularly hard-hit, with several airlines suspending flights due to the ongoing Israel-Iran conflict and related safety concerns. Carriers like KLM, Air India, Arik Air, Delta Air Lines, Etihad Airways, and Emirates temporarily canceled or reduced services to airports in Israel and neighboring regions.
The difficult geopolitical environment and fluctuating demand led to widespread suspensions or reductions of routes by airlines such as Ryanair, EasyJet, Norwegian, and El Al, impacting connectivity in various European and Middle Eastern cities.
Wizz Air ended its Middle East operations after four years of unprofitable expansion, citing a 94% decline in pretax profits and issues like engine reliability, regional climate, frequent airspace closures, and regulatory challenges. The airline decided to redeploy resources back to European markets with better long-term potential.
Avelo Airlines halted all West Coast flights, exiting its Burbank base, focusing instead on East Coast operations, driven by financial pressures.
In addition, some airlines, such as GOL Linhas Aéreas Inteligentes from Brazil, entered bankruptcy protection early in 2024, reflecting the broader financial distress in aviation.
On a more positive note, Air Malta was replaced with a new entity, KM Malta Airlines, essentially Air Malta rebranded. Vistara, an Indian airline, was merged into Air India in 2024 as part of a strategic consolidation effort by its parent companies.
CSA, a century-old Czech Republic-based airline, was absorbed by Smartwings in 2024, resulting in CSA being converted into a holding company and ending its membership in the SkyTeam alliance.
Other airlines that ceased operations in 2024 include Lamnei Airlines from Cambodia, OTT Airlines, a subsidiary of China Eastern Airlines, Eagle Air from Iceland, and FlyArna, a joint venture between Air Arabia and a local partner, which aimed to become Armenia's national carrier but ceased operations in January 2025 with its Air Operator Certificate (AOC) revoked in March.
Tailwind Air, known for its seaplane services between Manhattan and Boston, suspended operations in 2024 due to insufficient demand. FlyEgypt, a low-cost and charter operator based in Egypt, ceased operations in October 2024. Bonza, an ambitious low-cost Australian airline, also ceased operations in mid-2024 despite backing from 777 Partners and a promising start with a Boeing 737 fleet.
As we look to the future, the aviation industry will continue to face challenges, but it is hoped that lessons learned from the experiences of these 14 airlines will help guide the industry towards a more stable and sustainable path.
The airline news of 2024 painted a dire picture for the industry, with numerous airlines, including Humo Air, Jetlines, Lynx Air, and Wizz Air, finding it impossible to sustain operations due to a mix of financial losses, operational difficulties, and adverse geopolitical market impacts. The financial sector was significantly impacted as well, with airlines like GOL Linhas Aéreas Inteligentes from Brazil entering bankruptcy protection.
